My 7 Steps To Becoming Auction Ready
Would you know how to put yourself in the best position possible going into an auction?
Fear is the driving force that stops many buyers from even considering a property that is going to auction and part of my job as a Buyer’s Agent and Auction Strategist is to ease the fear burden and calm the nerves of my buyers.
One way I do this is by getting my clients what I call “Auction Ready”.
There are 7 steps to my Auction Ready process and applying each of these helps to calm the nerves simply because buyers go into the auction prepared and with a game plan.
If you plan to buy at auction on your own, here’s the process I recommend you go through to put yourself in the strongest emotional position going into the auction.
If you want to learn more about the strategy side of Auction and the specific steps pre, post and during the Auction, you should download my ebook below.
STEP 1 - INSPECT THE PROPERTY
Do it on your own terms and spend at least 40 minutes checking out everything, from the paint work to the kitchen cupboards. Ask the agent heaps of questions about the property and the reasons for sale so you get a good feel for the place and its history. Make sure you give yourself plenty of time (at the very least 10 days) to inspect prior auction day.
STEP 2 - GET FINANCE PRE-APPROVAL
Remember, buying under the hammer means the contract is instantly unconditional, which means there’s no out. Buyers must therefore have finance pre-approved to complete the purchase and a 10% cash deposit ready to go on the day and funds to be available to settle in 30 days. Tell your bank or broker that you intend to buy at auction and get your finance approval in writing before auction day.
STEP 3 - BOOK A BUILDING AND PEST REPORT
Sometimes the sellers will provide their own report and other times it will be at the buyer’s discretion to do so. If the sellers are supplying the report, its always a good idea to call the inspectors direct and speak with them openly about the property and the report they prepared. If you’re getting your own report, make sure you leave enough time for you to look over the report.
STEP 4 - DUE DILIGENCE
This is where you do your research on the property, find out about comparative sales and come up with a figure that you’re happy to pay and terms you’ll accept. You may want to talk to the neighbours to find out about the neighbourhood, or you could check with council about development approvals in the area. Due diligence can be as extensive as you like and I always recommend leaving no stone unturned. Once the hammer falls, the property is yours, warts and all, so doing your homework is critical.
STEP 5 - SORT THE PAPERWORK
Prior to auction, you’ll need to sign an auction bidding authority and register to bid. You’ll also need photo ID on auction day. If you’re the successful bidder, contracts will be signed immediately so you’ll be asked to nominate a solicitor and have your cash cheque ready to be handed over.
STEP 6 - GAME PLAN
The most important step in the process is to devise your auction plan. Will you be bidding aggressively? Is your plan to open the auction with the first bid? How will you knock out other bidders, and finally, what is your walk away price? Get a plan and stick to it!
STEP 7 - AUCTION DAY
The final step takes us to the day of auction. Come early and come prepared but most of all, have fun! Auctions are fun if you know what you’re doing.
If all of this sounds too daunting, appointing a professional to bid on your behalf will take the stress off your hands and most certainly get you a better result.
If you'd like to work with me for your next auction purchase, CLICK THIS LINK.